A South Korean court ruled against HYBE\u2019s attempt to terminate a shareholder agreement with former ADOR CEO Min Hee-jin, ordering the K-pop powerhouse to pay approximately 25.5 billion South Korean won (approx. USD $17.6 million) to the former executive and two other former ADOR directors<\/p>\n
That\u2019s according to news outlets<\/a> out of South Korea on Thursday (February 12), which reported that the Seoul Central District Court dismissed HYBE\u2019s lawsuit that sought validation of the contract termination and sided with Min in her claim for payment under a put option clause.<\/p>\n The court ordered HYBE to pay Min approximately 22.4 billion won, with a further 1.7 billion won going to former ADOR Vice President and 1.4 billion won to a former ADOR Creative Director.<\/p>\n Presiding Judge Nam In-soo ruled that Min\u2019s actions did not constitute a material breach to justify terminating the shareholder agreement, The Chosun Daily reported<\/a>.<\/p>\n \u201cThe termination grounds cited by HYBE are abstract or minor ancillary obligations,\u201d the court said, as cited by Chosun. It added: \u201cThey are not significant enough to justify contract termination, especially considering the damages Min would suffer, such as losing her put option rights.\u201d<\/p>\n \u201cThe termination grounds cited by HYBE are abstract or minor ancillary obligations. They are not significant enough to justify contract termination, especially considering the damages Min would suffer, such as losing her put option rights.\u201d<\/p>\n Seoul Central District Court (Via The Chosun Daily)<\/p>\n The decision marks a significant win for Min, who founded HYBE-owned ADOR and was credited as the creative force behind the girl group\u00a0NewJeans. She had been embroiled in a public feud with HYBE over control of the subsidiary.<\/p>\n The conflict began when HYBE launched an audit claiming Min attempted<\/a> to seize control of ADOR by approaching external investors about spinning off the subsidiary. HYBE terminated the shareholder agreement in July 2024, arguing that it was not obligated to buy back Min\u2019s shares in ADOR as part of her put option. Min, however, claimed that HYBE\u2019s argument was not valid.<\/p>\n After Min was dismissed<\/a>\u00a0as CEO of\u00a0ADOR\u00a0in August 2024, she then\u00a0resigned<\/a>\u00a0as an internal director at\u00a0the label in November of that year, issuing a public letter in which she alleged that HYBE\u2019s actions against her were retribution for her attempt to blow the whistle on misconduct within the K-pop giant. Min also alleged that another HYBE group, ILLIT, copied NewJeans.<\/p>\n The saga also prompted ADOR acts NewJeans to announce<\/a> in late 2024 that they have left the HYBE label. However, after months of legal battle, NewJeans lost their appeal<\/a>, preventing the group from pursuing independent activities without approval from ADOR.<\/p>\n In ruling against HYBE in its lawsuit against Min, the court said: \u201cAlthough she did contact various investors for ADOR to go independent, it seems like she worked on the assumption that she would get HYBE\u2019s approval,\u201d according to<\/a> Korea JoongAng Daily.<\/p>\n \u201cAlthough she did contact various investors for ADOR to go independent, it seems like she worked on the assumption that she would get HYBE\u2019s approval.\u201d<\/p>\n Seoul Central District Court (Via Korea Joongang Daily)<\/p>\n On HYBE\u2019s claim that Min \u201cattempted to take NewJeans away,\u201d the court said, according to<\/a> Chosun: \u201cThere is insufficient evidence to conclusively prove an attempt to defect with the members.\u201d<\/p>\n On Min\u2019s statement that if she had left, \u201cADOR will be hollow,\u201d the court reportedly ruled: \u201cThis merely stated the fact that ADOR\u2019s value would decline if the former CEO were to leave.\u201d Chosun said HYBE claimed Min\u2019s statement indicated her attempt to take NewJeans and end their exclusive contracts with ADOR.<\/p>\n Additionally, the court also ruled that Min\u2019s plagiarism allegations against ILLIT were valid. The court said, according to<\/a> KbizoOm: \u201cAccording to reports, ILLIT\u2019s achievements immediately following their debut showed many similarities to the image of NewJeans. The parents of the NewJeans members also filed a petition concerning this matter.\u201d<\/p>\n \u201cThese opinions reflect views about similarities and cannot be regarded as factual misrepresentations. Belift Lab has not presented additional evidence to prove that the two sides are dissimilar, and the controversy cannot yet be considered fully resolved,\u201d the court added.<\/p>\n \u201cAccording to reports, ILLIT\u2019s achievements immediately following their debut showed many similarities to the image of NewJeans. The parents of the NewJeans members also filed a petition concerning this matter.\u201d<\/p>\n Seoul Central District Court (Via KbizoOm)<\/p>\n However, the court noted that Min\u2019s suspicions are considered \u201cpersonal opinions\u201d instead of \u201cassertions of facts.\u201d<\/p>\n \u201cAs the CEO of ADOR at the time, her decision to raise concerns about the similarities in order to protect the value of NewJeans was a managerial judgment made within the scope of her authority to safeguard the company\u2019s interests.\u201d<\/p>\n Post the HYBE saga, Min is moving forward with plans to debut a boy group<\/a> through her new label, marking her first major project since leaving ADOR.<\/p>\n Korea Times reported<\/a> in December that Min confirmed her new plans during an appearance on YouTube<\/a> channel JTBCSHOW. There, she said she has no immediate plans to produce another girl group.<\/p>\n In October, Korean entertainment outlet\u00a0SpoTV News\u00a0reported<\/a>\u00a0that Min has set up a new entertainment company called\u00a0ooak Co.\u00a0It was officially registered on October 16 with business operations spanning artist management, music production and distribution, performance planning, and brand management.<\/p>\n SpoTV News\u00a0speculated\u00a0that Min may be positioning ooak as a potential new home for NewJeans if the court rules in the members\u2019 favor. However, in November, all five members of NewJeans have\u00a0decided to resume activities<\/a>\u00a0with ADOR following a\u00a0court ruling<\/a>\u00a0that the group remains bound to their exclusive agreement with the HYBE label.<\/p>\n